[mvpel]

The fallacy that the FairTax advocates are laboring under is that all of the revenue that the income tax generates must be replaced. While we're abolishing the IRS, let's abolish all the rest of the unconstitutional bureaus and departments that are sucking up this money, and we won't need to replace the revenue.

[kevkrom]

While we're abolishing the IRS, let's abolish all the rest of the unconstitutional bureaus and departments that are sucking up this money, and we won't need to replace the revenue.

Fine with me. Any spending that can be cut would reduce the necessary NRST rate. Write a bill and get some sponsors, and I'll help you push it for passage.

[ancient_geezer]

The fallacy that the FairTax advocates are laboring under is that all of the revenue that the income tax generates must be replaced.

Unfortunately that is the fallacy that Congress has operated under since '80's, when the Budget Enforcement Act and PayGo rules were implemented.

Until very recently (last spring IIRC) any revenue bill submitted before Congress was required to meet provision which required a replacement tax to be able to provide the same level of revenues as the tax system it replaced.

Hence the 23% rate of the NRST. Look for that to be lowered to reflect the Bush Tax cuts when they become permanent in a future re-introduction of the bill.

[Zon]

After an NRST is implemented and income taxes eliminated it will open the way to reign in government spending. Since we know what ABC bureaucratic agency costs it can be extrapolated to decreasing the NRST. For example, eliminate HUD and OSHA means the sales tax will be reduced from 23% to 22%. 

When the benefits of the NRST are realized citizens will demand their states to eliminate their income tax and implement a SRST (state retail sales tax).